SEVEN-ELEⅤ EN JAPAN CO KELO26 Store computers were linked to the Isdn network POS registers were linked to the store computer Each piece of hardware had a role Graphic Order Terminal. This was a handheld device with a wide-screen graphic display, used by the store owner/manager to place orders. The items were recorded and brought up in the order in which they were arranged on the shelves. The store manager/owner walked down the aisles and placed orders by item. When placing an order, the store manager had access(from the store computer )to detailed analysis of PoS data related to the particular item. (Exhibit 4 gives an overview of the results of the analysis provided by the store computer. The store manager used this information when placing the order, which was directly entered into the terminal. Once all the orders were placed, the terminal was returned to its slot, at which point the orders were relayed by the store computer to both the appropriate vendor and the Seven-Eleven distribution cente Scanner Terminal. These scanners read bar codes and recorded inventory. They were used to receive product coming in from a distribution center. This was then automatically checked against a previously placed order and the two were reconciled. Before the scanner terminals were introduced, truck drivers waited in the store until the delivery was checked After they were introduced, the driver simply dropped the delivery in the store, and a store clerk received it at a suitable time when there were few customers The scanner terminals were also used when examining inventory at stores Store Computer:. This linked to the ISDN network, the POs register, the graphic order terminal, and the scanner terminal. It communicated between the various input sources, tracked store inventory and sales, placed orders, provided detailed analysis of POs data, and maintained and regulated store equipment POS Register. To better understand the functioning of this information network, one needs to consider a sampling of daily operations. As soon as a customer purchased an item and paid at the POS register, the item information was retrieved from the store computer and the time of sale was automatically recorded. In addition, the cashier recorded the age and sex of the customer. To do this, the cashier used five register keys for the categories: under 13, 13-19, 20-29, 30-49, and 50 and over. This Pos data was automatically transmitted online to a host computer. All sales data ollected by 11: 00 p. m. was organized and ready for analysis by the next morning. The data was evaluated on a company-wide, district, and store basis The analyzed and updated data was then sent back to the Seven-Eleven Japan stores via th network. Each store computer automatically updated its product master file to analyze its recent sales and stock movements. The main objective of the analysis was to improve the ordering process. All this information was available on the graphic order terminal used for order The information system allowed Seven-Eleven stores to better match supply with demand Store staff could adjust the merchandising mix on the shelves according to consumption patterns throughout the day. For example, popular breakfast items were stocked earlier during the day while popular dinner items were stocked later in the evening. The identification of slow and non moving items allowed a store to convert shelf space to introduce new items. More than 50 percent of the items sold at a Seven-Eleven store changed in the course of a year. Part of this related to KELLOGG SCHOOL OF MANAGEMENTSEVEN-ELEVEN JAPAN CO. KEL026 • Store computers were linked to the ISDN network • POS registers were linked to the store computer Each piece of hardware had a role. Graphic Order Terminal. This was a handheld device with a wide-screen graphic display, used by the store owner/manager to place orders. The items were recorded and brought up in the order in which they were arranged on the shelves. The store manager/owner walked down the aisles and placed orders by item. When placing an order, the store manager had access (from the store computer) to detailed analysis of POS data related to the particular item. (Exhibit 4 gives an overview of the results of the analysis provided by the store computer.) The store manager used this information when placing the order, which was directly entered into the terminal. Once all the orders were placed, the terminal was returned to its slot, at which point the orders were relayed by the store computer to both the appropriate vendor and the Seven-Eleven distribution center. Scanner Terminal. These scanners read bar codes and recorded inventory. They were used to receive product coming in from a distribution center. This was then automatically checked against a previously placed order and the two were reconciled. Before the scanner terminals were introduced, truck drivers waited in the store until the delivery was checked. After they were introduced, the driver simply dropped the delivery in the store, and a store clerk received it at a suitable time when there were few customers. The scanner terminals were also used when examining inventory at stores. Store Computer. This linked to the ISDN network, the POS register, the graphic order terminal, and the scanner terminal. It communicated between the various input sources, tracked store inventory and sales, placed orders, provided detailed analysis of POS data, and maintained and regulated store equipment. POS Register. To better understand the functioning of this information network, one needs to consider a sampling of daily operations. As soon as a customer purchased an item and paid at the POS register, the item information was retrieved from the store computer and the time of sale was automatically recorded. In addition, the cashier recorded the age and sex of the customer. To do this, the cashier used five register keys for the categories: under 13, 13–19, 20–29, 30–49, and 50 and over. This POS data was automatically transmitted online to a host computer. All sales data collected by 11:00 p.m. was organized and ready for analysis by the next morning. The data was evaluated on a company-wide, district, and store basis. The analyzed and updated data was then sent back to the Seven-Eleven Japan stores via the network. Each store computer automatically updated its product master file to analyze its recent sales and stock movements. The main objective of the analysis was to improve the ordering process. All this information was available on the graphic order terminal used for order placement. The information system allowed Seven-Eleven stores to better match supply with demand. Store staff could adjust the merchandising mix on the shelves according to consumption patterns throughout the day. For example, popular breakfast items were stocked earlier during the day, while popular dinner items were stocked later in the evening. The identification of slow and non￾moving items allowed a store to convert shelf space to introduce new items. More than 50 percent of the items sold at a Seven-Eleven store changed in the course of a year. Part of this related to 6 KELLOGG SCHOOL OF MANAGEMENT